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Home My WebLink About20090320notice_of_application_order_no_30755.pdfOffice of the Secretary Service Date March 20, 2009 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER COMPANY'S APPLICATION FOR APPROVAL OF ITS AGREEMENT WITH ENERNOC TO IMPLEMENT AND OPERATE A VOLUNTARY COMMERCIAL DEMAND RESPONSE PROGRAM CASE NO. IPC-09- NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 30755 NOTICE OF APPLICATION YOU ARE HEREBY NOTIFIED that on March 2 2009, Idaho Power Company Idaho Power" or "Company ) filed an Application with the Commission seeking approval of an agreement with EnerNOC ("EnerNOC") to implement a voluntary demand response program for its commercial and industrial customers. YOU ARE FURTHER NOTIFIED that the Application describes the commercial demand response program ("Program ) as a voluntary program "targeting Idaho Power commercial and industrial customers that are willing and able to reduce their electrical energy loads for short periods (two to four hours) during summer peak days. YOU ARE FURTHER NOTIFIED that the Program will be extended to Schedule 9 Schedule 19 and Special Contract customers with an average summer billing demand of at least 200 kW and that Program participants will receive compensation for voluntarily reducing their energy loads. YOU ARE FURTHER NOTIFIED that EnerNOC will be responsible for the Program s implementation and operation. EnerNOC will make incentive payments to Program participants based on the reduction in demand each customer agrees to provide to the Idaho Power system. EnerNOC will receive compensation from Idaho Power based upon predetermined reductions and "event-based payments based on actual kWh energy reductions. YOU ARE FURTHER NOTIFIED that the term of Idaho Power s agreement with EnerNOC begins on February 23, 2009 and extends five years from that date. The agreement also states that it is contingent upon Commission approval without material change or condition. NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 30755 YOU ARE FURTHER NOTIFIED that EnerNOC has committed to deliver a certain amount of demand reduction for the Idaho Power system which varies "from a lower bound of 2 MW and upper bound of 35 MW in 2009, to a lower bound of 35 MW and upper bound of 65 MW in 2013." The targets for demand reduction for each year of the contract term (2009-2013) are 2 MW, 30 MW, 40 MW, 50 MW, and 50 MW, respectively. YOU ARE FURTHER NOTIFIED that the Application states that the total cost of the Program is approximately $12.2 million over the life of the contract, varying from approximately $315 000 in the first year of the Program to approximately $3.5 million in its final year. Idaho Power estimates that 85 percent of Program costs will result from Capacity Payments to EnerNOC, 6 percent from Energy Payments to EnerNOC and 9 percent from Idaho Power administrative costs. YOU ARE FURTHER NOTIFIED that the Program was reviewed by Idaho Power Energy Efficiency Advisory Group ("EEAG") and presented at a meeting with the Industrial Customers of Idaho Power. A detailed analysis of the "cost-effectiveness" of the Program has been included as an attachment to the Application. The Company proposes that all costs associated with the Program be recovered from Energy Efficiency Rider funds, or , " if the Commission decides in the remaining portion of the Irrigation Peak Rewards proceeding. . . that the costs of the Irrigation Peak Rewards Program should be recovered through the Power Cost Adjustment (("PCA" )), " that Program costs should likewise be recovered through the PCA. NOTICE OF MODIFIED PROCEDURE YOU ARE FURTHER NOTIFIED that the Commission has determined that the public interest may not require a formal hearing in this matter and will proceed under Modified Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission s Rules of Procedure, IDAP A 31.01.01.201-.204. The Commission notes that Modified Procedure and written comments have proven to be an effective means for obtaining public input and participation. YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this Application may file a written comment in support or opposition with the Commission within twenty-four (24) days from the service date of this Notice. The comment must contain a statement of reasons supporting the comment. Persons desiring a hearing must specifically NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 30755 request a hearing in their written comments. Written comments concerning this Application shall be mailed to the Commission and the Applicant at the addresses reflected below: Commission Secretary Barton L. Kline Idaho Public Utilities Commission Lisa D. NordstromPO Box 83720 Idaho Power Company Boise, ID 83720-0074 PO Box 70 Boise, Idaho 83707-0070 E-mail: bkline(8)idahopower.com lnordstrom~idahopower. com Street Address for Express Mail: 472 W. Washington Street Boise, ID 83702-5918 John R. Gale Vice President, Regulatory Affairs Idaho Power Company PO Box 70 Boise, ID 83707-0070 E-mail: rgale(8)idahopower.com These comments should contain the case caption and case number shown on the first page of this document. Persons desiring to submit comments via e-mail may do so by accessing the Commission s home page located at www.puc.idaho.gov. Click the "Comments and Questions icon, and complete the comment form, using the case number as it appears on the front of this document. These comments must also be sent to Idaho Power at the e-mail addresses listed above. YOU ARE FURTHER NOTIFIED that if no written comments or protests are received within the time limit set, the Commission will consider this matter on its merits and enter its Order without a formal hearing. If written comments are received within the time limit set, the Commission will consider them and, in its discretion, may set the same for formal hearing. YOU ARE FURTHER NOTIFIED that the Application has been filed with the Commission and is available for public inspection during regular business hours at the Commission offices. The Application is also available on the Commission s Website at www.puc.idaho.gov and then clicking on the "File Room" and then the "Electric Cases. YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held pursuant to the Commission s jurisdiction under Title 61 of the Idaho Code and specifically Idaho Code ~~ 61-524. The Commission may enter any final Order consistent with its authority under Title 61. NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 30755 YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted pursuant to the Commission s Rules of Procedure, IDAP A 31.01.01.000 et seq. ORDER IT IS HEREBY ORDERED that this Application will be processed under Modified Procedure. Persons interested in submitting written comments regarding this case or protesting the use of Modified Procedure should do so no later than 24 days from the service date of this Order. IT IS FURTHER ORDERED that the deadline established for filing an answer to production requests made pursuant to Commission Rule 225 is 14 days from the receipt of the request. DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ;;WTi'- day of March 2009. MARSHA H. SMITH, COMMISSIONER /.~ JI MPTON MISSIONER ATTEST: le D. Jewell Co mission Secretary O:IPC-09- NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 30755